Politicians on all sides last night welcomed a deal allowing bogus non-resident account holders six months to regularise their affairs, and insisted it was not an amnesty for tax evaders.
Under the terms of a deal announced yesterday, such account holders have until November to give the Revenue Commissioners details of any taxes owing. In return, the amount of any interest and penalties they face will be capped.
Government and Opposition parties last night said it was a sensible approach to the collection of tax due.
The Taoiseach, Mr Ahern, flatly denied the measures amounted to a new tax amnesty. "The Committee of Public Accounts (PAC) asked the Revenue Commissioners to examine these issues and come back with what they believed was the best solutions to the problems. They have done that," he said.
Labour's Mr Pat Rabbitte, a member of the PAC inquiry panel, described the Revenue approach as pragmatic. "To be honest, I couldn't call it an amnesty," he said. "This is going to be extremely punitive. Anyone who doesn't come out with their hands up by November 15th faces very serious consequences."
Fine Gael deputy leader Mr Jim Mitchell, who chaired the PAC investigation, said the announcement was "a last chance for many to avoid jail", adding that the amount of DIRT evaded, together with the interest and penalties paid, was likely to be a significant figure.
Those already being audited or whose affairs are being investigated by the Revenue cannot benefit from these arrangements. This includes individuals who are within the scope of the Ansbacher investigations, the Flood and Moriarty tribunals.
Under the terms of the voluntary disclosure arrangements, account holders who declare these monies in the next six months - by November 15th - will pay reduced interest and penalties.
They will avoid prosecution and will not be named in the Revenue's list of tax defaulters, as is currently the case when a person voluntarily discloses outstanding liabilities.
For those who avail of the new arrangements, the maximum amount of interest and penalties will not exceed the original amount of tax owing.
This is a significant saving compared with the normal rate at which interest and penalties are calculated by the Revenue. Generally taxpayers end up paying twice the amount of the original sum owing.
The Revenue has warned that after November 15th it will seek a list of bogus non-resident account holders from the various financial institutions and those who have failed to make a voluntary disclosure will face tougher penalties, their identities will be revealed and they could face prosecution.
Revenue Commissioners chairman Mr Dermot Quigley said the deadline would be strictly adhered to and he appealed to individuals with potential tax liabilities to avail of these arrangements.
"This is not a bluff. After November 15th, all bets will be off. Individuals will have to pay full interest and penalties, they will be named and could face prosecution." Mr Quigley refused to speculate on the amount of money that may be collected over the coming months but estimated there could be between 25,000 and 50,000 individuals with bogus non-resident accounts. Mr Quigley said the arrangements were not an amnesty. "This is the most pragmatic and efficient way to collect this money. It is the right way to proceed."
The Institute of Chartered Accountants in Ireland welcomed it as the most efficient way of collecting taxes at the least cost to the public.